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Chicago Tribune

July 13, 2007

While the American Gaming Association does not take a position on gambling expansion, we do find it necessary to respond to “Gambling on gambling” (Editorial, June 15).

First, the references made in the editorial to studies by Earl Grinols, an avowed gaming opponent, are hollow since research conducted by Grinols has been judged faulty by some of his peers. One called it “sophistry.”

On the subject of “cannibalization” raised by the editorial-often referred to as the “economic substitution theory”-the congressionally mandated National Gambling Impact Study Commission heard hundreds of witnesses from every jurisdiction that hosts the commercial casino gambling industry and was informed, time and time again, by small business owners, community leaders, elected officials and ordinary citizens that economic substitution concerns were unrealized.

Indeed, consider the case of Detroit, where casinos have been effective contributors to increased tourism activity. Instead of economic substitution, the result has been economic multiplication.

Frank J. Fahrenkopf, Jr.
President and CEO
American Gaming Association
Washington, DC

Tags:

  • economic substitution

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